Summary:
India has seen approximately 24 GWh of battery storage projects cancelled or re-tendered between 2018 and 2026. Aggressive bidding, rising battery costs, financing constraints and execution delays are challenging project viability despite growing storage demand and government support.
India's renewable energy storage sector is facing growing challenges, with approximately 24 gigawatt-hours (GWh) of battery energy storage system (BESS) projects cancelled or re-tendered between 2018 and 2026. Aggressive bidding, rising battery costs and difficulties in securing project financing have raised concerns over the commercial viability of several projects, potentially delaying India's renewable energy expansion.
Why Are Battery Storage Projects Facing Cancellations?
Battery energy storage systems store electricity generated from renewable sources such as solar and wind for use when generation is lower or electricity demand increases.
According to data from the India Energy Storage Alliance (IESA), the 24 GWh of cancelled or re-tendered capacity represents more than 11% of India's estimated 208 GWh battery storage requirement by 2030.
The major challenge is aggressive tariff bidding. Several developers secured projects at exceptionally low electricity storage tariffs, expecting battery prices to decline further.
However, battery cell prices reportedly increased by approximately 32% between January and July 2026, affecting project economics. Some tenders received bids below ₹2 per kilowatt-hour (kWh), while recent re-tendering has produced tariffs closer to ₹2.35 per unit.
These developments have increased the risk of project delays, financing difficulties and contract cancellations.
Major Battery Storage Projects Face Setbacks
Several large projects have encountered contractual and regulatory challenges during 2026.
| Project | Capacity | Development |
| NTPC Mouda, Maharashtra | 400 MWh | ₹413 crore contract terminated |
| West Bengal, Goaltore | 1,000 MWh | Tender annulled |
| Maharashtra BESS procurement | 4,000 MWh | Bidding process set aside |
NTPC terminated its contract with G R Infraprojects in September 2026 because of delays in meeting contractual obligations and project milestones.
Separately, the West Bengal storage project associated with Power Mech Projects was cancelled due to administrative and procedural issues.
The Maharashtra project's cancellation followed changes to contractual operating requirements after bidding.
These cases demonstrate that project failures arise from different factors, including financial viability, implementation delays and tender-related disputes.
Government Expands Investment in Energy Storage
Despite execution challenges, India's demand for electricity storage continues to increase.
The Central Electricity Authority projects battery storage requirements of approximately 236 GWh by FY32, involving estimated investment of ₹3.49 lakh crore.
The government has also introduced viability gap funding (VGF) schemes to support storage development and reduce project costs.
Under the latest Green Energy Corridor Phase-III programme, approximately ₹50,000 crore has been allocated towards developing 50 GWh of battery storage capacity.
The broader ₹1.86 lakh crore programme aims to strengthen renewable energy transmission infrastructure and facilitate the integration of up to 135 GW of renewable electricity capacity by FY33.
What Lies Ahead for India's Battery Storage Industry?
As of September 2026, India had installed approximately 13.47 GWh of BESS capacity, while another 153 GWh was at different stages of approval or development.
However, awarded capacity does not necessarily translate into operational projects.
The sector's growth will depend on financially sustainable tariffs, stable battery prices, timely financing and stronger project execution.
Recent electricity shortages have also highlighted the importance of storage in supplying power during periods when solar generation is unavailable.
Conclusion
India's battery storage market has substantial long-term demand, supported by renewable energy targets and government funding. However, repeated tender cancellations indicate that rapid capacity announcements alone are insufficient. Commercially viable pricing, dependable equipment and timely project completion will determine how effectively the industry expands.
